INVENTORY SYSTEM

Of Catlea Sales and Marketing

CHAPTER 1 INTRODUCTION
1.1 Background of the study

Nowadays, people are depending in fast-phased technologies. It makes their jobs easier and
give them time to other things. Having automated systems evolve improvements in speed of
time that they spend in their everyday jobs. In the industry of having a business, some of
them were using these systems especially in their sales and inventories. Others still cannot
follow the prevailing trend of having these systems. It is hard for them to facilitate their

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sales and inventory and it lead them to find time to record and manage it.

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Inventory is basically the total amount of goods and materials held in stock by a factory,

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store and other business. An inventory system is a process whereby a business keeps track
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of the goods and material it has available. In its simplest sense it can be done manually by a
count at the end of each day. In this way it is possible to keep a record of the goods coming
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in to the business and goods being sold.

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1.2 Background of the company

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Since Catlea Sales and Marketing using manual inventory consumes a lot of time and is
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prone to errors, it would be helpful to build a system that will computerize the transactions
from acquisition of the product description to updating the inventory database. The
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computerized inventory system will improve employees’ work efficiency by computerizing

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routinely and time consuming tasks such as the time spent in taking down product
information. As a result, the time can be used in more productive activities. The accuracy of
the current system will also be improved, since the computerized inventory system would
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eliminate the need of constantly encoding lengthy details of products by having an inventory
database.

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 Monitoring encompasses the tracking of individual processes, so that information on their
state can be easily seen, and statistics on the performance of one or more process can be
provided.

1.3 Statement of the problem

Based on the conducted interview and observations, the group had come up with the
following problems being encountered by the project.
The study seeks to answer the following problems:

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1. Misplaced Inventory Items

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2. Inaccurate Needs Analysis

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3. Decentralized Design

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4. Lack of System Optimization
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1.4 Statement of objectives
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The specific objective of the study is to provide an Inventory System for Catlea Sales and
Marketing.
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1.4.1 General objectives

1. A common problem with an inventory system design is a failure to include methods
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for cross-referencing the locations of inventory items.

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2. Identifying and evaluating what your business needs from an inventory system is a
vital step in the process.
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3. An inventory system that stands on its own significantly increases the chances it will
be inaccurate.

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 4. A well-designed inventory system must capture the right data at the right time to
avoid ordering mistakes that result in inaccurate inventory levels.

1.4.2 Specific objectives

1. Misplaced, lost or stolen inventory items can lead to increased labor and
inventory costs and reduced profitability. A design solution can be to
incorporate clearly written standard operating procedures for checking in and

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storing inventory items.

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2. If an inventory system is already in place, a needs analysis should focus on

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identifying gaps between what the system currently is and what the system
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should be.
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3. A decentralized design might initially be a less costly option for a small business
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on a tight budget, it can prove to be more costly over the long run.

4. Optimization is especially important as a cost-control measure in a

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manufacturing business, because it functions both to reduce waste and improve

serviceability.
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 1.5 Significance of the study

This IT project intends to provide an accurate and effective Inventory System which will benefit
the following:

Accounting Office. The proposed system will lessen the time, enhance the level of work,
help its processes more reliable and efficient, and provide accuracy and security of data and
information. It will contribute to the development of the Catlea Sales and Marketing and add to
its competence.

Furthermore, the proposed system will lessen the work of employees or officer-in-

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charge in the inventory process and provides faster access of inventory’s information. It will also

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reduce or eliminate the percentage of human error in tallying in the inventory process.

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Monitoring and updating of inventory records can be easily accommodated.

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Researchers. The project serves as a basis of their study. It engages their knowledge in
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programming activities to create a computerized system. It will also serve as a tool to sharpen
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their knowledge and ability in developing a computerized system.

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